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The government of Japan is planning to submit details of its proposed global tax on bunker fuel ahead of the upcoming International Maritime Organization (IMO) Marine Environment Protection Committee (MEPC) Meeting in March, Reuters reports.

Under Japan's proposal, charges would be pooled into a fund to help reduce carbon dioxide (CO2) emissions from shipping in developing countries and, as an incentive, part of the money would be refunded to vessels that improve their energy efficiency.

The objective of the plan is to encourage research and development for ships powered by renewable energy and help support developing countries. The funds raised would be allocated towards improving conditions at ship recycling yards in locations such as India and Bangladesh.

According to data released recently by the International Energy Agency (IEA), CO2 emissions from marine fuels worldwide have increased from 344.5 million tonnes in 1971 to 610.4 million tonnes in 2007, representing an increase of 265.9 million tonnes, or 77.2 percent, over this 36-year period.

The IEA report says global CO2 emissions from marine fuels made up 2.1 percent of total worldwide CO2 emissions in 2007.

Japan has said that capping emissions in absolute terms would be difficult given high volatility in demand for international shipping, in which developing economies play a key role.

Instead, Japan argues the maritime sector should target improvements in the energy efficiency of individual ships and support developing countries' efforts to do so.

Japan's levy plan differs from the European Commission's idea of incorporate shipping into a global emissions trading scheme.

The Council of the European Union has already agreed on plans to set a target of reducing emissions for the maritime sector by 20 percent on 2005 levels by 2020.

The EU Council's emissions targets for the shipping and aviation sectors form part of a global target of achieving at least a 50 percent reduction of global emissions as compared with 1990 levels by 2050 and for developed countries to reduce their emissions in aggregate by 80 percent or more by 2050 and by 30 percent by 2020 as part of that goal.

At the last meeting of the Marine Environment Protection Committee (MEPC) in July, an in-depth discussion was held on market-based instruments and a work plan was agreed for its further consideration of the topic, as of its next session (MEPC 60, March 2010).

"Such instruments would have two main purposes: to offset growing emissions in other sectors; and to serve as an incentive for the industry to invest in more fuel-efficient technologies," the IMO said in July.

In addition, delegates approved voluntary guidelines on an Energy Efficiency Design Index for new ships and a guidance on the development of a Ship Energy Efficiency Management Plan.

The next MEPC meeting is due to be held in London on 22-23 March 2010.